CIMB on 1.6 Trillion Baht Data Center Investment in Thailand

Prachachat•Economy•6d ago

Reader Briefing

CIMB reports that the Board of Investment has approved over 1.6 trillion baht in data center projects since 2024, benefiting multiple Thai industrial sectors.

•The Board of Investment (BOI) approved data center projects worth over 1.6 trillion baht since 2024.
•Investments are distributed across electrical systems, cooling systems, land development, and civil engineering.
•Amonthep Chawala warns that data centers may not significantly boost GDP initially due to high reliance on imports.
•Panida Tangsriwong notes that the Thai government is proactive in issuing regulations regarding water, electricity, and clean energy.

Overview

•The Board of Investment has approved data center projects worth over 1.6 trillion baht since 2024.
•Investment in electrical and energy infrastructure accounts for 25-35%, valued at approximately 400-560 billion baht.
•Cooling and mechanical systems account for 20-30% of investment, valued at 320-480 billion baht.
•Civil engineering and data center buildings account for 15-20% of investment, valued at 240-320 billion baht.
•Amonthep Chawala states that data centers might not drive GDP significantly in the first 2.5 years because of a heavy reliance on imports.
•Amonthep Chawala highlights that Thailand must upskill in technology and languages to avoid relying solely on imports.
•Panida Tangsriwong observes that the Thai government is proactive in issuing regulations for water, electricity, and clean energy usage.
•Panida Tangsriwong notes that Thai entrepreneurs in printed circuit board production and electrical systems will benefit most from these investments.

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Key Quotes

Amonthep Chawala

"Why not look at higher than 3% in the next 5 years? Because private consumption is still pressing the Thai economy."

ทำไมถึงไม่มองว่าสูงกว่า 3% ในช่วง 5 ปีหลังจากนี้ เพราะการบริโภคภาคเอกชนยังเป็นตัวกดดันเศรษฐกิจไทย

Key Entities

Organization

CIMB Thai(ซีไอเอ็มบี ไทย)

A bank whose representatives provided analysis on data center investments in Thailand.

Board of Investment (BOI)(คณะกรรมการส่งเสริมการลงทุน (บีโอไอ))

The agency that approved data center projects worth over 1.6 trillion baht since 2024.

Person

Panida Tangsriwong(ปนิดา ตั้งศรีวงษ์)

Deputy Managing Director of Large Corporate Business at CIMB Thai.

Amonthep Chawala(อมรเทพ จาวะลา)

Assistant Managing Director and Head of Research at CIMB Thai.

Place

Singapore(สิงคโปร์)ℹ️

One of the ASEAN countries where the data center industry has developed.

Malaysia(มาเลเซีย)ℹ️

An ASEAN country where data center construction reached a point of requiring zoning.

Thailand(ไทย)ℹ️

The country receiving data center investments and currently issuing related regulations.

Indonesia(อินโดนีเซีย)ℹ️

One of the ASEAN countries where the data center industry has developed.